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TMI Blog2018 (1) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... d income along with interest has been accepted in the revised return of income. So, the explanation could be treated as bonafide and reasonable. So, we are of the considered view that in these circumstances, the penalty is not leviable. - Decided in favour of assessee. - ITA No.4725/Del./2015, ITA No.4726/Del./2015 And ITA No.4727/Del./2015 - - - Dated:- 22-1-2018 - Shri R.S. Syal, Vice President And Shri Kuldip Singh, Judicial Member For the Assessee : None For the Revenue : Shri Amit Jain, Senior DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Since common questions of facts and law have been raised in the aforesaid appeals, the same are being disposed of by way of consolidated order to avoid repetition of discussi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has recorded commission income in his return on estimated basis which was found to be under-estimated to the tune of ₹ 78,760/-, ₹ 3,75,163/- ₹ 2,79,388/- for AYs 2005-06, 2007-08 2008-09 respectively and consequently, the assessee had the said understated amount made surrender which have been added back to his income and consequently penalty proceedings u/s 271(1)(c) of the Act were initiated. 4. Assessee filed comprehensive reply and stated that he had no motive to evade tax on the income rather inadvertently made short reporting of income in his return of income. Finding submission made by the assessee not tenable, AO came to the conclusion that the assessee has concealed his income and consequently levied penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the accountant and when he has realized this inadvertent lapse, he honestly come forward to voluntarily report the quantum of inadvertent suppression by surrendering the said income. Assessee also sought protection u/s 273B of the Act. 9. When undisputedly the income under-reported by the assessee has been surrendered and accepted by the AO being the personal expenses and it is also not in dispute that the assessee has also shown in his return of income expenses drawn from joint ventures in land dealings with its associates, we are of the considered view that under-reporting of personal expenses in the return of income is result of inadvertent lapse. 10. Moreover, when the income in question has been surrendered and accepted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corded in the diary was on account of expenses made by the assessee for personal and business expenses which cannot be said to be a concealed income. 12. Similarly, in case cited as CIT vs. Suresh Chandra Mittal (2002) 123 taxman 1052 (MP) , Hon ble High Court held that, though it was true that the assessee had not surrendered at all and that he had done so on the persistent queries made by the Assessing Officer, but once the revised assessment was regularized by the revenue and once the assessing authority had failed to take any objection in the matter, the declaration of income made by the assessee in his revised returns and his explanation that he had done so to buy peace with the department and to come out of vexed litigation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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